Abbreviated name of option |
OXYZkrccc
Where:O - type of instrument,
XYZ - code standing for name of underlying instrument (as per the Exchange Management Board resolution),
k - option type and expiry month code (as per the Exchange Management Board resolution),
r - last digit of expiry year,
ccc - exercise price designation. |
| Option code |
Granted by the clearing entity following the ISIN standard. |
| Option type |
Call options and put options. |
| Option class |
Comprises all options on the same underlying instrument having the same standard specification. |
| Option series |
All options of the same class and type, having the same expiry date and the same exercise price. |
| Option style |
European - exercisable only on expiry date. |
| Underlying instrument |
WIG20 index. |
| Multiplier |
PLN 10 per index point. |
| Option value |
Product of option price and multiplier. |
| Transaction value |
Product of option value and transaction volume. |
| Quotation unit |
Index points. |
| Expiry months |
Four nearest months of the cycle comprising March, June, September, December. |
| Expiry date |
Third Friday of the expiry month for the series. If such day is not a trading day according to the exchange calendar, the expiry date shall fall on the last trading day before the third Friday of the expiry month. |
| Last trading day |
Expiry date. |
| Exercise price |
A value equal to the value of the underlying instrument, by reference to which the settlement balance shall be determined taking into account the multiplier.
Differences between exercise prices of the different series may amount to:
- 25 points for exercise prices between 25 points and 475 points,
- 50 points for exercise prices between 500 points and 950 points,
- 100 points for exercise prices equal to or higher than 1000 points.
For each expiry date, the following option series are introduced to trading on the first trading day:
- one series with an exercise price that is nearest to the closing value of the underlying instrument at previous session. Where the closing value of the underlying instrument at previous session is the arithmetic mean of two nearest exercise prices, the higher of the two shall be deemed the exercise price for the series,
- four series with an exercise price that is higher than the exercise price as specified in point (a), and
- four series with an exercise price that is lower than the exercise price as specified in point (a).
For any option series in trade, if on any trading day prior to the expiry date the closing value of the underlying instrument:
- is equal to or higher than the lowest of the four highest exercise prices for these series, then such number of new series are introduced to trading on the next trading day that for each expiry date there are four series in trade whose exercise price is higher than the last closing value of the underlying instrument,
- is equal to or lower than the highest of the four lowest exercise prices for these series, then such number of new series are introduced to trading on the next trading day that for each expiry date there is four series in trade whose exercise price is lower than the last closing value of the underlying instrument.
The Exchange Management Board may decide to introduce additional option series. Information on introducing additional option series is disclosed to the public no later than on the trading day preceding the introduction.
|
| Exercise value |
Product of exercise price and multiplier. |
| First trading day |
For first option series in a class - determined by the Exchange.
For option series with new expiry date in a class - first trading day after expiry date of the previous series.
For subsequent series whose expiry dates correspond to the expiry dates of series remaining in trade first trading day after a day when the closing value of the underlying instrument:
- is equal to or higher than the lowest of the four highest exercise prices,
- is equal to or lower than the highest of the four lowest exercise price.
For additional option series - determined by the Exchange Management Board.
|
| Settlement price |
The settlement price is determined on the expiry date as the arithmetic mean of all WIG20 index values from the last hour of continuous trading and its value at the session close, having rejected 5 top and 5 bottom index values. |
| Settlement value |
Product of settlement price and multiplier. |
| Settlement balance |
For call options, the settlement balance is calculated according to the following formula:
c(T) = max{[S(T) - m];0}
For put options, the settlement balance is calculated according to the following formula:c(T) = max{[m - S(T)];0}
where: c(T) - settlement balance on exercise date,
S(T) - settlement value on exercise date,
m - exercise value,
T - exercise date. |
| Rights of option owners |
An option owner is entitled to exercise his option and receive the settlement balance from the writer. |
| Option exercise rules |
Automatic exercise on expiry date if:
- for call options - settlement price for a series is higher than exercise price for the series,
- for put options - settlement price for a series is lower than exercise price for the series.
Option owner may waive exercise.
|
| Settlement date |
First business day following the date on which settlement price is determined. |
| Settlement |
Cash in PLN. |
Index options
